Portugal's Business Practices
... The 2002 GDP in Portugal was $182 billion with the majority of that amount coming from services such as commerce, government, housing banking and finance. One big change to the Portuguese economy was in 1998 when the country qualified for the European Monetary Union, which meant that in January 2002, the euro became Portugal’s official currency (Portugal, 2003). In 2001 Portugal exported items such as clothing and textiles, cork, hides and machinery with sales totaling $25.9 billion. The majority of these items were exported to countries in Europe like Germany which accounted for 19.2% of total sales, Spain with 18.6% and France which had 12.6 %. At the same time Portuguese exports to the U.S. accounted for only 6% of its total sales. In 2001 Portugal did import about $15 billion more than it exported with total sales coming to around $39 billion (Portugal, 2003). Despite the negative trade balance, Portugal is considered to have a healthy balance of trade because of factors such as large tourism earnings and direct foreign investment (Library of Congress, 1993). Politics The constitution of 1976 that affected so much of Portugal and its history had a great influence on many areas of politics and government. The president, the government and the parliament have different degrees of power and influence over each other. In Portugal there are four main political parties. Each has significantly different political viewpoints and ideas. The four parties that have existed since 1976 are: Portuguese Communists Party, Portuguese Socialists Party, Social Democrat Party and Social Democratic Center Party. Currently, the political system is being dominated by both the Social Democrat Party and the Portuguese Socialists Party (Library of Congress, 1993). History Portugal is known as one of the major influences in the expansion of Europe throughout history. Ancient explorers such as Vasco da Gama (1460-1524) and Bartholomew Diaz (1450-1500) were Portuguese natives and are known around the world for their discoveries of both foreign lands and objects which encouraged Portuguese trade with other nations (Robertson, 2002). As these explorers sailed around the globe they continually conquered different areas of the world to form Portuguese colonies. The people of these areas were forced to live under Portuguese rule and some of these colonies lasted for over 500 years (Blauer & Lauré, 2002). What many people believe to be the worst time in the history of Portugal was during the time of the Inquisition. The movement was first established in Spain in the year or 1492 and essentially stated that any individual that did not believe in Christ would be removed from the country or killed. The Inquisition attacked all non-Christians with a majority being Jews and the Moors of North Africa who were Muslim. The vast amount of money that the Portuguese spent on wars and crusades because of the Inquisition caused the small country to become so weak that in 1580 Portugal was conquered by Spain. Spanish rule did not last long in the country and Portugal did manage to regain control (Blauer & Lauré, 2002). A time in Portuguese history that will forever be remember is the time of the dictatorship of António de Olveria Salazar. This dictator did manage to keep Portugal debt free but at the cost of many of the country’s citizens living in poverty. In addition, Salazar stifled the growth of Portugal by ignoring technological advances in business, farming and education and by keeping Portugal isolated from the rest of Europe. At a time when many European countries were letting go of their colonies all over the world, Salazar insisted on keeping those his country had gained almost 500 years earlier for as long as possible. All of these decisions caused great harm to Portugal’s economy (Blauer & Lauré, 2002). In the year 1968 Salazar resigned as dictator after suffering from a major stroke (Portugal - atlapedia online, 1999). The years that followed marked a great time in Portuguese history. A government dominated by the military was established and almost all of the remaining Portuguese colonies were freed. In 1976 Portugal held its first free general election and President Antonio Ramalho was elected (Portugal - atlapedia online, 1999). In April of that same year the Constitutional Assembly approved a new constitution for Portugal and a move towards socialism was started (Encyclopædia Britannica, 2003). Portugal entered into the European Community in 1986 and today the country is continually improving (Blauer & Lauré, 2002). Motivation at Work When trying to motivate employees in Portugal there are many things to keep in mind. First, people there do not wish to be empowered. For this reason it can sometimes be very difficult to encourage an employee to take on the responsibility of many important work related jobs (Bennett, 2003). Secondly, Portugal is a society that has a high power distance (with a rank of 29-30) and because of this the country’s workers want and rely on dependence. Portugal’s high rank in uncertainly avoidance is another factor that can affect the way you motivate. With this high rank comes a rejection of deviant ideas, a strong sense of what the “norms” are and the disliking of change. Lastly, Portugal is a very feminist society and this directly corresponds to the fact that money is not considered to motivate an employee (Mrs. G’s worksheet). All of these factors influence the way an employee should be motivated. As an employer you need to remember that the Portuguese will work their best and be the most productive when change within a company is very limited and they are told directly and specifically what to do. Time in Relation to Planning One of the most important ideas to understand about the Portuguese is that in general the whole idea of punctuality is not something that they are very familiar with. In fact, it is thought to be more courteous to arrive five minutes late than five minutes early. When trying to schedule an appointment or a business meeting there are many factors that one will need to keep in mind. Usual office hours are from 9:00 a.m. to 12:30 p.m. and 2 p.m. to 6 p.m. The best time to schedule an appointment is around the times of 11 a.m. and 4 p.m. Lunch time, which generally lasts about an hour, is sacred to the Portuguese and usually all important activity stops during this time (Bennett, 2003). When setting deadlines and meeting times with individuals one needs to be sure to repeatedly tell individuals when and what exactly is due. In addition, Portuguese do not plan well for things like business presentations and plans. For that reason they are excellent a...